-- Posted Thursday, 13 August 2009 | Digg This Article
| | Source: GoldSeek.com
GENERAL MARKET CONDITIONS/FUNDAMENTAL FACTOR
As expected the Fed meeting did not surprise the markets, interest rate expectations were left unchanged and they said that the zero interest rate policy (ZIRP) will continue for a long time. In my view the Fed, European central banks and other developed nations central banks will follow ZIRP either till the end of December or till the first quarter of 2010. Beyond that higher inflation will make sure that interest rates are raised. Interest rates in Asia may be raised in the last quarter of this year.
The Fed has said that recession is nearing an end and that shattered financial markets are healing. I have my doubts over the same as financial markets are healing due to hyper liquidity created by every central bank. Central banks have not taken any tough and unpopular measures to tide the recessionary crisis. I expect another commodity price bubble to resurface over the next twelve to eighteen months. The pace of rise of base metals itself suggest that another commodity bubble is in the offing.
Intra day gold, silver, copper and crude oil have room for further gains as long as they are able to hold key technical support of $943, $1410, $273 and $69 respectively. Fundamental bearishness still persists in all commodities.
TECHNICAL VIEW
COMEX GOLD DECEMBER
Gold has managed to hold $943 and needs to hold the same to prevent a fall to $930 and $919. On the higher side only a break of $954.80 will result in $963.20 and $972.80
COMEX SILVER SEPTEMBER
Silver has managed to hold the $1390-$1410 zone and now targets $1510 and $1585. For the rest of August there will be sellers only on a consolidated fall below $1390.
DISCLOSURE: NO POSITIONS
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice.Prepared By Chintan Karnani. Website www.insigniaconsultants.in
For further clarifications on this report call 91-11-23216486, 9312335649 (Mr.Chintan Karnani)
-- Posted Thursday, 13 August 2009 | Digg This Article | Source: GoldSeek.com
